The StockTwits® Edge: 40 Actionable Trade Set-Ups from Real Market Pros

CHAPTER 38

Broken Butterfly Formation

Anne-Marie Baiynd, @AnneMarieTrades

In the era of the social Web, a person's reputation does not have to come from personal meetings. The time line of ideas, a person's consistency, and owning up to losses as well as wins are what matter most. While I've not met Anne-Marie, her reputation for good ideas is second to none. She offers up complete and detailed ideas around her strategy and then follows up with commentary on how trades performed.

MAJOR CORNERSTONES

I see a number of events as cornerstones in my career. The first was learning to understand market internals—the heartbeat of the market—UVOL, DVOL, TRIN, ADVN, DECN, VIX, and (most important) the movement of the E-mini futures. Without monitoring these elements, much of my trading day would be a miss.

The second high-impact event was my introduction to Brian Shannon through a Web search years ago, while I was striving to understand how the market works. He had a monumental effect on my trading career—from the volume-weighted average price (VWAP) to multiple time frames, from understanding stages that a stock goes through to paying attention to reports coming out. He taught me that in order to trade well, you must always be in a state of discovery and interpretation, and be willing to change your mind. I never realized how little I knew before becoming familiar with Brian's work.

The most recent major event in my trading career came with the discovery of the Fibonacci retracements ...